EV maker Polestar’s quarterly sales volumes slide amid US market ban

STOCKHOLM, July 9 (Reuters) – Sweden’s Polestar reported a 4% fall in quarterly sales volumes on Thursday, weeks after the EV maker was handed a U.S. market ban starting in the ​2027 model year, adding to its ongoing struggles to ‌turn a profit.

In the face of uncertain global EV demand, the company has shifted its emphasis on the European market, which accounted for 80% of its sales in the first half of the year.

• The U.S. Commerce Department in June ‌denied ​Polestar authorization under the Connected Vehicles Rule, ⁠which restricts cars with connected-vehicle ⁠technology tied to China.

• The decision bars the EV maker, majority-owned by China’s Geely Holding, from the U.S. market from the 2027 model year, unlike sister brand Volvo Cars, which received special ​authorization a month earlier.

• Polestar said it will continue to sell off its existing Polestar 3 and Polestar 4 inventory in ⁠the U.S., maintain access to its service ⁠network and continue selling second-hand cars.

• The ban raises ​questions about the future production of the Polestar 3, its only U.S.-manufactured ​model.

• Second-quarter sales fell to 17,296 cars, compared with ‌18,026 vehicles sold in the same period last year.

• Earlier in the day, Porsche – a key rival with its Macan and Taycan models – reported a first-half delivery decline, citing market pressure in China and the ⁠expiration of U.S. tax credits for EVs.

• Amid tariff pressures, Polestar has opted to refresh aging models rather than launch entirely new ones. The ⁠company in February announced ‌refreshed versions of its best-selling Polestar 2 and ⁠Polestar 4 models over the next year.

• In ​May, ‌Polestar reported a bigger first-quarter loss, as pricing pressure ​and U.S. ⁠tariffs offset stronger sales.

• “The first customer deliveries of Polestar 5 are set to start and production of the Polestar 4 SUV has started, with first deliveries expected during the fourth quarter,” Polestar CEO Michael Lohscheller said.

(Reporting by Anhata Rooprai in Bengaluru and Marie Mannes in Stockholm; Editing ​by Vijay Kishore)